Jessops' five tumultuous years on the stock exchange are set to come to an end after the company told shareholders their equity was worthless.

David Adams, the executive chairman, insisted the camera specialist has a future on the high street but that shareholders would be wiped out when it finalised plans to restructure its £60m debt. "Jessops definitely has a future," he said. "We believe it, the banks and suppliers believe it and I think consumers believe it. However, it is difficult to see any value for shareholders."

Jessops was floated by its private equity backer, ABN Amro Capital, in October 2004. But, after debuting at 155p, the honeymoon was short-lived. Within five months it had issued a profit warning that knocked the shares down by a third. The stock recovered but three profit warnings in 2007 proved terminal with the shares bumping along ever since. They have not traded above 10p in the past year.

Adams said the market had been "dizzy" about Jessops' prospects, with the retailer felled by over-zealous expansion just as the supermarkets and internet made their presence felt in the camera market.

Such has been the share price collapse that Jessops' market value is smaller than its £5m pension deficit. Adams said the group's future profits would not be enough to service or clear its debt, making the financial structure untenable. Jessops is now in effect owned by HSBC. Adams said the goal was for the company to remain "solvent" throughout the transition from the public to the private domain. He said if administration had been on the cards, "it would have happened by now".

Adams refused to comment on the timetable for the talks or what form the private company would take. But he said all options were "solvent". Analysts say the most likely outcome is a debt-for-equity swap. Over the last year Adams has led a turnaround that involved shutting 100 shops and cutting better deals with suppliers. He said no further closures were planned but further cost reductions were likely. It aims to cut the number of full-time shop staff and replace them with part-timers.

The update came as Jessops reported £5.9m loss for the six months to 31 March. Like-for-like sales were down 4.5% over the period. The retailer said trade in the last two months had been "encouraging" with like-for-like sales down 3.6% versus a 8% decline in the same period a year ago.